Kontoor(US:KTB)2025-08-07 10:51Revenue Performance - Revenue for Q2 2025 was $658 million, an increase of 8% compared to the prior year, with a 4% increase excluding Helly Hansen's contribution[5] - The full year 2025 revenue outlook is now between $3.09 billion and $3.12 billion, reflecting a growth of approximately 19% to 20%[18] - The company anticipates third quarter revenue of approximately $855 million, representing an increase of about 28% compared to the prior year[19] - Net revenues for Q2 2025 were $658,259,000, an increase of 8% compared to $606,898,000 in Q2 2024[35] - Total revenues for the three months ended June 2025 were $658,259,000, representing an 8% increase compared to $606,898,000 in the same period of 2024[55] Profitability Metrics - Adjusted gross margin for Q2 2025 was 46.4%, up 120 basis points year-over-year, benefiting from the Helly Hansen acquisition[5] - Adjusted operating income for Q2 2025 was $100 million, a 25% increase compared to the prior year, with a 32% increase when excluding Helly Hansen[5] - Adjusted EPS for Q2 2025 was $1.21, representing a 23% increase year-over-year, and $1.33 when excluding Helly Hansen, a 36% increase[5] - Adjusted gross margin for the full year 2025 is expected to be approximately 46.1%, an increase of 100 basis points compared to the prior year[19] - Adjusted operating income for the full year 2025 is projected to be around $443 million, a 16% increase compared to the prior year[21] - EBITDA for Q2 2025 was reported at $118,753,000, compared to $82,247,000 in Q2 2024[48] Segment Performance - Wrangler segment revenues grew by 7% to $461,279,000, while Lee segment revenues decreased by 6% to $165,627,000 in Q2 2025[42] - Segment profit for Wrangler increased by 22% to $108,091,000, while Lee reported a profit decrease of 7% to $12,417,000 in Q2 2025[42] - Total reportable segment revenues for the first half of 2025 were $1,273,724,000, reflecting a 3% increase from $1,233,481,000 in the same period of 2024[42] - Direct-to-consumer revenues for the three months ended June 2025 were $87,130,000, reflecting a growth from $72,791,000 in the same period of 2024[55] Cash Flow and Assets - Cash flow from operations is now expected to exceed $375 million, an increase from the previous outlook of exceeding $350 million[22] - Cash provided by operating activities for the first half of 2025 was $103,308,000, down from $152,671,000 in the first half of 2024[40] - Total assets as of June 2025 were $2,717,905,000, up from $1,612,439,000 in June 2024[38] - Cash and cash equivalents decreased to $107,482,000 in June 2025 from $334,066,000 in December 2024[38] - Total invested capital as of June 2025 was $1,919,075,000, significantly higher than $951,134,000 in June 2024[58] Expenses and Debt - The company reported a 15% increase in selling, general and administrative expenses for Q2 2025, totaling $226,300,000 compared to $196,117,000 in Q2 2024[35] - Interest expense rose by 30% to $13,485,000 in Q2 2025 from $10,382,000 in Q2 2024[35] - Long-term debt increased to $1,366,510,000 in June 2025 from $740,315,000 in December 2024[38] - Corporate and other expenses decreased by 78% to $6,360,000 in Q2 2025 compared to $28,378,000 in Q2 2024[42] Other Financial Metrics - The company experienced a significant increase in other income, reporting $29,761,000 in Q2 2025 compared to a loss of $3,021,000 in Q2 2024, marking an increase of 1085%[35] - Adjusted return on invested capital (ROIC) for the trailing twelve months ended June 2025 was 22.0%, down from 27.6% in the previous year[58] - The effective income tax rate adjusted for acquisition and integration-related costs was 20% for the trailing twelve months ended June 2025[58] - The contribution from Helly Hansen for June 2025 was $29,232,000, with organic net revenues at $629,027,000[48] - Restructuring and transformation costs for the three months ended June 2025 totaled $45.4 million, with a tax impact of $1.6 million[61] - Acquisition and integration-related benefits included $33.0 million from foreign currency exchange contracts related to the Helly Hansen acquisition[62] - The company reported a net income of $251,277,000 for the trailing twelve months ended June 2025, compared to $239,578,000 in 2024[58]